Lucid wins SPAC deal with 11th hour call

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Lucid Motors Inc.’s latest appeal to investors was successful in getting the electric car startup’s deal approved by merging with a blank check company.

Churchill Capital Corp. IV, the specialist acquisition company that is buying Lucid, said on July 23 that the companies had mustered enough additional votes from Churchill shareholders after extending the voting deadline. The stock was up 2.5% at midday in New York.

“We thank our shareholders, institutional and individuals, new and old, for their unwavering support,” said Michael Klein, the investment banker who founded Churchill, at the July 23 shareholders’ meeting. The meeting had been adjourned from the previous day after absent shareholders left the deal short of votes.

The hiccups are just one example of what can happen when two megatrends of the pandemic era – the rise of the individual investor and the boom of PSPC – collide. In this case, executives had to coach first-time investors who may have heard of the stock on Reddit or purchased it on platforms such as Robinhood, and who did not know the vote or how to participate.

Lucid and Churchill have repeatedly appealed to investors in writing, video, social media and Reddit, begging them at one point to vote. Klein actually spelled out the web address and phone numbers of Churchill’s proxy attorney and asked the holders to check their junk mail records for proxy voting material. Lucid CEO Peter Rawlinson echoed Klein: “Whether you are a Robinhood trader or manage through a traditional brokerage, please, please vote.

Their call to vote was finally answered. The transaction has been completed and the combined entity will be renamed Lucid Group and will trade under the symbol LCID early next week.

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